2 Workshop DescriptionProvides a comprehensive overview of Succession Planning and guidelines to address your needsProvides details to prepare and implement a succession planning system
3 Workshop Objectives To understand your role in succession planning To clarify the importance of an organization's Succession Planning SystemTo identify and analyze critical positions requiring backups on a temporary or permanent basisTo learn how to compare individual appraisals of past and present performance with assessments of future individual potentialTo examine methods of grooming high-potential employees for advancement by narrowing developmental gaps between present performance and future potential
4 Gain Buy InGain buy in from key stakeholders to sustain organizational supportForm committees to ensure the planning, implementation and follow-up is successfulBoard Members and Executive Level StaffThe Guiding CoalitionHR Team and Individual ResponsibilitiesManagersPotential Leaders and Employees
5 Your Role In Succession Planning As a manager, it’s your role to ensure:Identify key replacement needs and the high-potential people and critical positions to include in the succession planClarify present and future work activities and work resultsCompare present individual performance and future individual potentialEstablish individual-development plans (IDPs) to prepare replacements and to develop high-potential workers
6 DefinitionsSuccession planning is defined as "any effort designed to ensure the continued effective performance of an organization, division, department, or work group by making provisions for the development and replacement of key people for key positions and work activities over time" (Rothwell, 1994, p. 5).
7 Need for Success Planning Need for future growth and skill developmentProactive approach to fill key potential vacanciesAligns mission with workplace planning strategy
8 Just-in-Time (JIT) Approach to Building the Leadership Pipeline SelectHireAdvance and PromoteRecruitEvaluate ResultsRetainDevelopTrainClassify jobsManage PerformanceTransfer KnowledgeCompen-sate
9 Integrated Approach to Building the Leadership Pipeline Workforce & Succession PlanningCompetency ModelRecruitment, Selection, HiringTraining & DevelopmentPromotion & Career MobilityRetentionKnowledge ManagementCompensationProgram Evaluation
10 Why the Integrated Approach Many ways to build leadership pipelineBecause all aligned with strategic plan, workforce plan, competency model, and/or other frameworks, aligned with each otherPipeline larger to meet demand for more talent
11 Integrated Approach Program Evaluation Workforce & Succession Planning Recruitment, Hiring and SelectionPromotion and Career MobilityRetentionCompetency ModelTraining and DevelopmentKnowledge Management
12 Who’s in the Pipeline First Line Supervisors Middle Managers High Potentials and Replacement Pool for Senior ManagersAll Employees?Technical SpecialistsTime
13 Expanding the Pipeline Cascading leadership succession planningNeeds for competency developmentEmployee demandRetentionLeadership defined as a competency that employees at all levels are expected to developCascading the impact of leadership successionThe need to fill vacancies at lower levels when senior managers are promotedDemonstrated needs for competency developmentAssessments show that competencies of current managers and supervisors fall short to fill positionsEmployee demandWhen employees see senior managers are being developed, they ask for comparable opportunitiesRetentionThe opportunity to develop skills and competencies that may lead to future advancement is for many employees a motivator and a retention factorLeadership defined as a competency that employees at all levels are expected to developBy providing a common framework, a leadership culture of competence is embraced by all employees
14 Five Questions to Ask? Who’s in the leadership pipeline? What are the most pressing developmental needs?How are these needs being met?What is the impact?How are the efforts to build the leadership pipeline being evaluated?
15 Succession Planning Process To create a system for succession planning that meets the needs of the organization and provides career growth opportunities for individuals based on their readiness, talent, and skills.To identify key leadership competency behaviors, skills, and knowledge needed to prepare high potentials for future key leadership roles.
16 Talent ManagementTalent management improves the skills and talents of and increases the performance of your teamTeam members enjoy the feeling of personal growth and satisfaction that comes from the opportunity to develop their skills and better contribute to their team
17 Job/Analysis Competency Development Measure ResultsHiring/SelectionEmployee RetentionLeadership Development ProcessSuccession PlanningTalent Management StrategyPerformance ManagementCareer Development360 Degree Feedback
18 Definition of Succession Planning “Succession planning is a means of identifying critical management positions starting at manager and supervisor levels and extending up to the highest position in the organization.”William J. RothwellEffective Succession Planning (2001)Succession planning should not and must not stand alone.It must be paired with succession management which creates a more dynamic environment.
19 Succession Planning and Management A deliberate and systematic effort by an organization to:ensure leadership continuity in key positionsretain and develop future intellectual and knowledge capitalencourage individual advancementIntegrated into the HR SystemSuccession Planning is managed to ensure successShould also address the needs for critical backups and individual development in any job category
20 Succession Planning Do you have an established succession plan? Replacement versus Succession PlanningDo they have the skills and experience need to fill critical positions?Is your organization prepared for the coming exodus of highly trained and knowledgeable baby boomers in the coming years?Do you have an established succession plan to ensure the vitality and success of your organization in the future?You might be thinking to yourself, "Well, we thought that Bill would be a good replacement for Mary when she retires in a year. We've got that position covered..."It's great to have a replacement in mind for a soon to depart team member, however, this is only one part of what succession planning actually entails. This is called Replacement Planning. Don't get us wrong, you are on the right track, but you can do much better.While replacement planning only identifies an individual to fill a looming job opening, Succession Planning is a holistic approach that focuses on identifying individuals who are a good fit for promotion and subsequently developing their knowledge, skills, and abilities to prepare them for success in their future position.
21 Succession Planning Components Leadership SupportGain Buy-in from Senior ManagementIdentify Top Leadership Experience, Education, and Job Experience3. Identify High Potential SuccessorsEstablish nomination criteria.Experience, Education, Manager/Mentor Recommendation2. HR AuditDevelop a Pool of HighPotential CandidatesMonitor and Evaluate Progress and ResultsMake AdjustmentsIntegrated Leadership Development4. Identify Successor Developmental NeedsIdentify skills gap, set goals, create development planDetermine measurable goals and outcomes1. Replacement PlanningIdentify Readiness of Successors for Key PositionsReview Performance and Development with Key Management StaffSelection CriteriaReviewing each successor and compare to other potential successorsTime in current positionPerformanceReadiness for advancementPotential to move to a new positionDevelopment requiredSuccessor Development PlansDefine development strategiesIdentify successor’s developmental needsCreate individual developmental plans (IDP’s)Tie development planning to the Leadership Strategy InitiativeProvide coaching and feedbackMonitor and track performance resultsStress model is based on GE and Motorola and other large companies.5. Create Development OpportunitiesDevelopmental Activities/ProjectsMentoring/CoachingCreate a Leadership Succession Plan
22 Establishing a Succession Plan Understand the critical position being vacated - what are the requirements of the jobBenchmark the job against future job requirementsDetermine what the ideal candidate will look likeEvaluate potential replacementsDetermine their performance and potential readiness levelEstablish a Development Plan and GoalsImplement development planProvide Coaching and FeedbackTrack and Monitor the plan
23 Steps in Succession Planning Process Gain Buy-in from Senior ManagementIdentify succession planning purpose and goals.Assess the organizations current and future business strategy and top leadership replacement needs.Identify and analyze key positions.Assess candidates against job and competency requirements.Identify development strategies.Define succession planning process and procedures.Communicate and implement succession planning.Collect information from employees regarding their career interests and expertise.Assess employee competencies.Create individual development plans.Select people to potential fill positions.Develop, select, and schedule training and development programs.Monitor progress.Measure and evaluate outcomes.
24 Succession Planning Policy Identifying those employees who have the right skills to meet the challenges facing the organizationEvaluate the quality and “readiness” of named successorsDefine development requirements and implement development planReview performance and development with key management staffMake recommendationsMonitor and evaluate progress and results
25 Human Resource Assessment Defines the leadership needs of the organizationIdentifies qualification of successors and assesses employee capability and readiness to various positionsHelps designate a talent pool of candidates qualified for specific positionsDefines the developmental needs, competency and education requirements
26 Checklist to Succeed Part of an overall organizational culture strategy to develop managers at all levels. Ongoing commitment of high-level management. Part of an integrated HR process Identify what skills the organization will need in 5, 10 or 15 years Critical positions must be identified and included in the Company's Succession Planning program Analyze the workforce and identify who will be eligible for retirement within the next five years
27 Checklist to SucceedManagers need to identify the responsibilities, skills and competencies that will be needed by their replacements Identify high-performers almost ready to step into those critical positions Identify specific behaviors, skills and values that leaders to succeed now and in the future. Use Assessment tools to make accurate leadership placement and development decisions. Establish a system for communicating succession planning information
28 Checklist to SucceedIdentify a systematic approach for identifying, nominating and selecting potential successors Review background information on potential successors, such as education, experience, skills, appraisals and potential Determine training and development requirements of potential successors Develop skills of potential successors through work experiences, job rotation, projects and other challenging assignments Establish a system for monitoring candidate's development plan progress by senior management Succession planning must include a system for providing feedback and encouragement to potential successors
29 Succession PlanningIdentify High PotentialsCreate a Development PlanImplement the PlanTrack the PlanConduct Yearly Calibration Discussions with Your Manager, and HR to determine Readiness
30 Critical Position Profile Interview someone in a current leadership role to determine their job requirements now and in the future.This provides a profile of a successful candidate for this position
31 Successor’s ProfileIdentify a successor’s job profile and experience to determine their current level of proficiency
32 Conduct a Gap AnalysisAnalyze the potential successor’s experience level and compare to the advanced level job requirements
33 Define High Potential Characteristics Results Driven – has completed many challenging assignmentsPeople skill – Influences, motivates, works with a wide range of people.Mental ability – Street smart, asks insightful questionsLifelong Learning – seeks challenging opportunities for new knowledge, learns from successes and failuresIntegrated thinking – Links ideas, sees essence of problemFlexible – Adjusts priorities, takes risks, embraces changeEnergy – gets energy from work and energizes others
34 Replacement Planning Process High potentials nominated as successors by managers, or Senior Management Senior management review the recommendations and make revisionsAn HR executive advisory group discusses replacement skill level, readiness, and potential to get a fairly accurate judgment of a person’s capabilityRecommendations made for potential replacement opportunities
35 Employee InputIdentify employee’s career interests, qualifications, and future job promotion interests on an employee input formTrack employee career interests and skill qualifications for future job opportunitiesCareer development discussions between managers and employees become part of the formal performance appraisal process
36 IDP Activity: Complete an IDP Fill out the following form on an individual of your choice from your organization.That person should be a “high potential”, someone who has the capability to advance to higher levels of responsibility and or develop increased proficiency in competence.The form should indicate how you will help this person narrow the gap between how they presently perform and what he or she must do to qualify for advancement to a critical position.
37 IDP Activity: Complete an IDP Fill out the following form on an individual of your choice from your organization.That person should be a “high potential”, someone who has the capability to advance to higher levels of responsibility and or develop increased proficiency in competence.The form should indicate how you will help this person narrow the gap between how they presently perform and what he or she must do to qualify for advancement to a critical position.
38 Leadership Development Mentoring for Success360 FeedbackLeadership AcademyPerformance ManagementTraining & DevelopmentCompetency AssessmentCollege Degrees
39 Development Strategies Identify career paths for future career growthIdentify competencies and assess strengths and areas for developmentHave employees create a career profile and identify development plansMentor and coach employeesProvide ongoing feedbackDiscuss career goals with employeesDevelop a promotion from within policyBecause change is just as prevalent in the nonprofit sector as it is in the business world, nonprofits need to provide training and education as a means of equipping workers with the tools required to adapt to changing skill requirements, organizational shifts and an increasingly complex environment.
43 High Potential Leadership Development Skill buildingDegree programsLeadership scholarshipsExtraordinary leader programManagement classesRelationship building and knowledgeExecutive retreatAdministrative manager/executive eventsManagement meetingsLeadership luncheons
44 Leadership Development Approach Executive ManagersAdministrativeManagersMiddle ManagersProfessionalTechnicalSkill BuildingExtraordinaryLeaderScholarshipsDegree ProgramsManagement DevelopmentKnowledge and Relationship BuildingExecutive RetreatExecutive EventsExec/Admin eventsManagement MeetingsLeadership Luncheons= Target audience= Also invited
45 Identify and prioritize their greatest development needs Types of TrainingFormally educate employees on business issues, accounting practices and ethicsIdentify and prioritize their greatest development needsInvest wisely in training employees to carry out the missionincreasingly important for nonprofits to formally educate their employees on business issues, accounting practices and ethics to remain compliant with evolving legislation and tax codes.Tight budgets require organizations to identify and prioritize their greatest development needs. Nonprofits should offer only the training that will provide the most bang for their buck, as identified through structured and targeted needs analysisNonprofits that invest wisely in their organizations through the strategic development and training of their employees find they are stronger and better equipped to carry out their missions.
46 Coaching and Mentoring Coaching is provided when performance needs improvement and is focused on job performance. Coaches helps individuals improvement performanceMentoring is provided to help individuals grow in their professional experience.Mentors provide one-on-one coaching to help Protégé’s identify areas that need development and establish goals.Mentors provide guidance, support, feedback, direction, and share their experiences to help Protégé’s be successful in their current and future role.
47 Tracking Successors Methods available: Competency Assessment Performance AppraisalMentoring ProgramCareer Experience and Development ActivitiesTraining Records360 Feedback
48 Measure Success Define measurable goals during the planning stage Track goals regularlyAdjust goals when neededAnalyze progress and take corrective steps to improve goal performanceAnalyze readiness, potential, performance, and replacements, employee morale, organizational culture, turnover, loss of talent, etc.
49 Building Your Leadership Pipeline Planning Model
50 Building Your Leadership Pipeline Engage senior leadersIdentify leadership competencies leadersAssess developmental needsCreate leadership development strategyUse Individual Development Plans (IDPs)Tap into talent pool of eligible employees and recruitDon’t let cost keep you from building the pipeline
51 Succession Planning Software Database tools for registering participants, assessing needs, determining the gaps, identifying areas for improvement, creating development plans, providing on-going feedback, identify progress, and tracking and measuring results.Administrative tools help you manage the process, send s, monitor progress, run reports, and maintain user information.